Alfa Laval acquires Aalborg Industries

Alfa Laval acquires Aalborg Industries

Alfa Laval has signed an agreement to acquire Aalborg Industries Holding A/S for a total cash consideration of SEK 5.0 billion, on an enterprise value basis, from Altor 2003 Fund, LD Equity and the Company’s management.

Aalborg Industries has some 2,600 employees and is expected to generate sales of about SEK 3.3 billion in 2010. The closing of the transaction is subject to clearance from regulatory authorities.

Headquartered in Aalborg, Denmark, the company is a leading provider of critical products, systems and service solutions, today mainly to the marine and off-shore markets, but it also has an increasing exposure to the power industry as well as to other industrial end markets. Its offering includes boiler systems, thermal fluid systems, waste heat recovery systems and inert gas systems. The company complements and further strengthens Alfa Laval’s leading global position, by adding a strong product offering that focuses on energy efficiency.

Alfa Laval has significant and long-standing expertise in successfully addressing a number of industries, including the marine and off-shore markets, and can provide an attractive platform to continue Aalborg Industries successful development, for instance in applications such as exhaust gas cleaning.

“Aalborg Industries is an excellent fit and I’m very pleased to welcome a strong and well-run company into Alfa Laval”, says Lars Renström, President and CEO of the Alfa Laval Group. “Aalborg Industries complements our offering of energy-efficient and environmental solutions.

With the acquisition of Aalborg Industries, Alfa Laval will further strengthen its offer in heat transfer. It will add market-leading positions in attractive market segments, including boilers and thermal fluid systems, as well as inert gas systems, with significant barriers to entry. The company’s strong manufacturing and engineering presence in fast-growing markets such as China, Vietnam and Brazil, as well as the aftermarket potential generated by a large installed base, are highly attractive attributes.

Over the last five years, Alfa Laval has acquired some 28 companies with total sales, at the time of the acquisitions, of about SEK 5 billion.

Did you know that… Aalborg Industries’ exhaust gas cleaning solution has in testing been able to remove nearly 100% of the sulphur and up to 80% of the particles?